FIC launched the 2022
edition of Va Urma (https://vaurma.ro) with the participation of the
Prime Minister of Romania, Mr. Nicolae Ciuca, together with members of
the Government and Parliament, international institutions, and economic
leaders. The event was a first step in setting country directions
agreed and supported by the authorities, representative international
institutions, and the business environment. The participation of the
Prime Minister confirms the partnership and the relationship of trust
between the Government of Romania and the Foreign Investors
Council.
The "Va
Urma" project represents an economic development model for the next 20
years that includes several scenarios. Va Urma emphasises the multiple
advantages of combining private (foreign and domestic) and public
investments together with measures aiming to stimulate digitisation and
innovation. The key elements of the programme comprise: improving
institutional capacity and the efficiency of state-owned companies;
protecting human capital by facilitating access to jobs, education and
health; transforming the energy mix in the directions established by
the Green Deal at European level and the development of energy
infrastructure.
On Wednesday, 7 September, the National Institute of Statistics (INS)
reconfirmed the 5.3% economic growth for Q2/2022 and the 5.8% advance
for H1/2022, compared to the similar periods of 2021. Most of the
advance, namely 5.2%, came from households’ final consumption, followed
by changes in inventories, with 4.7%, while net exports had a 3.9%
negative contribution. The biggest share in GDP formation in the first
half of 2022 belonged to households’ consumption, with 70%, followed by
investments, with 22%, while net exports had a negative influence of
11%.
BCR has revised upwards its economic growth estimate for Romania for
2022, from 5.1% to 6%. The bank’s economists do not rule out a
technical recession, but say that there are low chances for this
scenario to materialize. Ciprian Dascălu, BCR’s chief economist, has
added that BCR’s economic growth forecast for H2/2022 may differ from
the one that will be recorded, given the government’s plans to inject
the equivalent of 3.9% of GDP into the economy in the last five months
of the year to reach its deficit target.
Euro area economy grew more than initially estimated in Q2/2022,
supported by consumer and government spending. GDP was up 0.8% against
the previous three months - more than the previous estimate of 0.6%.
Economic growth in the overall EU also exceeded initial estimates, the
GDP having increased by 0.7% compared to the first quarter.
Government debt stood at RON 621.828 billion (48.3% of GDP) in June
2022, compared to RON 577.142 billion (48.8% of GDP) at the end of
2021, according to data centralized by the Ministry of Finance. Medium-
and long-term debt was RON 600.182 billion in June, and short-term debt
amounted to RON 21.646 billion. Government securities accounted for
most of this debt, namely RON 511.954 billion. Loans totaled RON 97.775
billion. RON-denominated government debt stood at RON 273.466 billion,
euro-denominated government debt was RON 290.513 billion and
USD-denominated debt amounted to RON 56.507 billion (equivalent).
UniCredit Bank has decided to further increase interest rates on
RON-denominated deposits for individuals, self-employed professionals,
Authorized Natural Persons (PFA) and companies with turnovers below EUR
1 million. As a result, starting from 5 September, individual clients
will benefit from interest rates of 8% per year for 12-month term
deposits in RON, of 7% per year for 6-month term deposits and 6% per
year for 3-month term deposits made through Mobile and Online Banking.
Raiffeisen Bank has launched "factory GROW", a personalized scaling
model that can be used by entrepreneurs to obtain loans of up to EUR
500,000 to develop their businesses on other markets, to expand their
business model or innovate, the bank announced on Wednesday. The module
provides entrepreneurs with a free, personalized scaling strategy,
based on growth objectives, support to identify the directions they
should focus on, but also the necessary tools to manage the changes in
their business.
Tbi bank, present on the Romanian market, has announced that it has
launched a financing solution allowing students to cover the full cost
of accommodation in the West Gate Studios campus in the west of
Bucharest, at the beginning of the academic year, and to repay it
later, in monthly instalments, with zero interest and fees. The West
Gate Studios private campus, located in the West Gate Business
District, includes 800 studios and apartments with a total capacity of
1,600 beds, and students have access to a swimming pool, fitness room,
an event space, a restaurant, a library, parking, dry cleaning or
private medical services.
La Fântâna, a distributor of watercooler systems, a company owned by
the Swedish investment fund Oresa Ventures and by Romanian entrepreneur
Cristian Amza, has announced that it has invested EUR2 million in an
automated bottling line at its plant in Tălmaciu (Sibiu County). The
investment will streamline the process of bottling water in two types
of packaging - spring water in reusable 19-litre bottles (for
watercooler dispensers) and spring water in reusable 8-litre bottles
for the residential segment, company officials have indicated.
Government approved, during the meeting on Wednesday, 7 September, the
technical-economic indicators for the rehabilitation and modernization
of the Social-Cultural Center (former Administrative Palace) in
Călăraşi. The value of the investment exceeds RON 77 million, according
to a press release issued by the Ministry of Development, Public Works
and Administration. The center, built in 1898, is a historic monument
of national importance included in the List of Historic Monuments.
Galaţi City Hall has announced that it will invest nearly RON 64
million for the modernization of one of the busiest boulevards in the
city. To this end, the municipality has launched a tender for the
public procurement contract for the project "Modernization of George
Coșbuc Boulevard, Phase 1 - road works and water and sewerage networks
- design and execution", the deadline for submitting bids being 10
October 2022.
During the meeting on Wednesday, 7 September, the Government approved
the draft Government Decision endorsing the National Tuberculosis
Control Strategy in Romania for the period 2022-2030. It proposes a
radical change in the way tuberculosis treatment services are
organized, provided and paid for. According to the Ministry of Health,
the document sets goals that continue efforts to control and eradicate
tuberculosis and provides a framework for profound changes that
accelerate progress and respond professionally to patients’ needs. The
same as in the National TB Strategy for 2015-2020, reducing TB
morbidity and mortality by maintaining adequate detection and treatment
success rates remains one of the strategic priorities in the National
TB Strategy 2022-2030 as well.
On Wednesday, 7 September, the Chamber of Deputies adopted a draft law
that increases the unemployment benefit granted to people with at least
one year of contributions to the public social security system. As a
result, the value of the unemployment benefit will be equal to the
value of the social reference indicator. The draft law thus amends
Article 39 of Law 76/2002 regarding the unemployment insurance system
and employment stimulation. The Chamber of Deputies adopted the draft
law as the decision-making body. The law will therefore be sent for
promulgation.
The Government Emergency Ordinance (OUG) establishing certain measures
applicable to fertilizers management, as well as amending Law no.
232/2010 on the import of fertilizer samples and of fertilizers, was
approved during the Government meeting on Wednesday, 7 September 2022,
according to a press release. The cited source indicates that the
adoption of the legislative measures stipulated in the normative act
will contribute to the sale of fertilizers in Romania in accordance
with the new European legislation in force.
Low-cost carrier Blue Air suspended flights to and from Romania for a
week after its accounts were blocked for failing to pay a fine. The
government says the account freeze is no reason to suspend flights but
the company said it is now unable to pay its suppliers. Prime Minister
Nicolae Ciuca said more than 3,000 Romanian passengers were affected on
Tuesday evening. The government said its priority is bringing Romanian
citizens back home and explained it can use planes of national carrier
Tarom for repatriation flights. The company’s announcement came
unexpectedly and Romanian media showed videos of the chaos created by
passengers at the main Bucharest airport, Henri Coanda.
Romania ranks first in Central and Eastern Europe in terms of consumer
spending on food products in physical stores, which accounts for 66% of
total expenditures, according to a real estate investment company.
According to the analysis, the share of online sales in Central and
Eastern Europe has increased by 9%, to 15%, in the past five years and
is expected to reach 20% within the next four years.
Nearly 70% of Romanians spend maximum EUR 25 per month on education,
while 7% prefer to use free learning resources, according to a study
conducted by an online education platform dedicated to entrepreneurs
and labor market professionals. According to data published by
Upriserz, only one in ten Romanians allocates large budgets to
education, ranging from EUR 75 to EUR 167/month.